[Round-up] Keppel Land Steps in Sky-high Building Project in HCM City, Upward Pressure on Interest Rates Seen

Tuan Minh

21:50 03/03/2016

BizLIVE - Singapore’s Keppel Land Co. has stepped in a project to develop a high-rise complex in Thu Thiem Urban Zone in Ho Chi Minh City. The Vietnamese central bank sees great upward pressure on interest rates.

[Round-up] Keppel Land Steps in Sky-high Building Project in HCM City, Upward Pressure on Interest Rates Seen

Singapore’s Keppel Land Co. has stepped in a project to develop a high-rise complex in Thu Thiem Urban Zone in Ho Chi Minh City.

GS E&C, Kumho E&C Eye Water Treatment Deal in Northern Vietnam
South Korea’s GS E&C and Kumho E&C are interested in building a water treatment system, with the total investment expected to reach more than $100 million, in the northern province of Quang Ninh, according to the Vietnam Investment Review.
The local authorities have asked the two potential investors to make official investment proposals for this project in the form of either build-lease-operate-transfer or build-operate-transfer, or any kind of public-private partnership model.
Vietnam Plastics Processing Machines Face Anti-dumping Trouble in India
India’s Directorate General of Anti-Dumping and Allied Duties (DGAD) has imposed anti-dumping duties on plastics processing machines, or injection molding machines, imported from Vietnam, Malaysia, the Philippines and Taiwan.
The decision was made after the Indian agency found that the machines were being sold low costs. The Vietnamese machines will be levied a duty of 23.15%, while the rate will be at 44.74%, 30.85% and 27.98% for those imported from Malaysia, the Philippines and Taiwan.
EVFTA to Trigger High-quality Investment Wave to Vietnam: Ambassador
The EU-Vietnam Free Trade Agreement (EVFTA) will ignite a bigger high-quality investment wave from Europe to Vietnam and create more added value for the Vietnamese economy, said Head of the EU Delegation to Vietnam, Ambassador Bruno Angelet Bruno.
This should be aided by the private sector in Vietnam and an increase in local supplies for European firms operating in the country, the ambassador said at the launch of the white book of trade and investment, published by the European Chamber of Commerce in Vietnam (EuroCham).
The Vietnamese government should do more efforts to improve the business environment, including accounting and reporting norms and corporate establishment paperwork, EuroCham recommended.
Keppel Land Joins Sky-high Building Project in HCM City
Singapore’s Keppel Land Co. has signed a deal to buy a 40% stake in Empire City Co, Ltd., which will invest $1.2 billion to build a high-rise complex in Thu Thiem Urban Zone in Ho Chi Minh City.
The deal, valued at $93.9 million, will make Keppel Land the biggest shareholder in Empire City Co., which is equally 30% held by Gaw Capital Partners and a consortium formed by two Vietnamese real estate developers.
Vietnam, Turkey Aim to Double Trade to $3 Billion This Year
Vietnam and Turkey have set a target of doubling bilateral trade to $3 billion this year, according to the Vietnam Chamber of Commerce and Industry (VCCI).
Trade between the two countries had grown rapidly in the past few years, reaching $1.5 billion last year, with Vietnam enjoying a surplus, said Nguyen The Hung, deputy director of VCCI's HCM City office.
Vietnam Plastics Producers Expect 16% Growth
Vietnam’s plastics sector will maintain its strong growth rate of 14%-16% in the next few years thanks to its young demographics and high consumption capacity, according to the Vietnam Plastics Association.
Falling oil prices will benefit the plastics manufacturing by lowering production costs but also boosting demand, said Ho Duc Lam, chairman of the association.
EVN Pledges Sufficient Power Supply for Dry Season
State-owned Electricity of Vietnam (EVN) has drawn up a plan to ensure that power supply will meet the anticipated surge in demand during the dry season this year, according to the Vietnam News Agency.
EVN plans to complete 351 electricity works of 110 kV to 500 kV with a total power line length of 4,800 kilometers across the nation.
Vietnam to Have 6,400 Km of Expressways by 2030
Vietnam will have a network of expressways with a combined length of 6,411 kilometers by 2030, according to a prime minister-approved plan.
The North-South expressway system will consist of two routes with 3,083 kilometers in length.  
Interest rates on the Vietnamese dong are undergoing great upward pressure amid uncertainties in the global financial market and rising credit demand, said Bui Quoc Dung, director of the Monetary Policy Department under the State Bank of Vietnam (SBV).
“Adverse developments in the international financial market, rising pressure on government bond sales and growing demand for medium- and long-term loans in 2016 are putting considerable pressures on interest rates,” Mr. Dung told the VnEconomy.vn newspaper.
Vietnam’s headline inflation is forecast to rebound to 3.3% by the end of Q2 2016 and speed up to 5.2% by the year’s end, exceeding the government’s target ceiling of 5.0%, HSBC has said in its latest update on the country’s economy.
The British bank says that the pick-up in economic activity is beginning to translate into a gradual rise in inflation pressures, with headline consumer price index (CPI) climbing 1.3% year-on-year in February from 0.8% in January.